Imminent Supply Deficit Raises Prospects of Increased Uranium Prices

Uranium is shining right now, sitting at its highest level in more than a year as short-term supply concerns fade and long-term demand prospects improve.

The uranium industry experienced a boost after the US avoided the debt limit crisis, which may have jeopardized the provisions of the Inflation Reduction Act (IRA). The IRA pledged $700 million to establish a domestic supply chain for high-assay low-enriched uranium (HALEU) in an effort to decrease dependency on Russia, which presently provides about a fifth of enrichment and conversion services.

According to committee chair Cathy McMorris Rodgers, the US is “dangerously reliant on Russia’s supply of nuclear fuels for our existing nuclear power plant fleet,” and the bill’s passage “sends a strong signal to the market that will help restore American nuclear leadership and fuel infrastructure.”

Concerning Russia, a bill prohibiting uranium imports from the country beginning in 2027 was approved by a US House panel in May.

Fortunately, higher uranium prices are a key growth driver for the industry, which is likely why Cameco plans to extract 95% more uranium from McArthur River and Key Lake, expecting 20.3 million pounds in 2023 compared to 10.4 million pounds in 2022.

In April, Cameco extended a long-standing arrangement to supply fuel through 2040 to Canada’s only private sector nuclear generator, Bruce Power.

This agreement, along with a number of others including supplying Ukraine’s nuclear needs until 2035, will account for a significant amount of Cameco’s production capacity. This could make it more difficult for buyers to find new supply which will help support the long-term uranium spot price and, in turn, benefit uranium companies like ATHA Energy Corp (CSE:SASK) (OTCQB:SASKF) (FRA:X5I).

Mineral exploration company ATHA Energy holds the largest exploration package in the Athabasca Basin, the world’s most prominent uranium basin, with 3.4 million acres. The company also has a 10% carried interest portfolio of claims run by Nexgen Energy and IsoEnergy Ltd. 

Securing Canada’s Next Generation of Uranium Supply

ATHA Energy just inked a binding letter of intent (LOI) with Stallion Discoveries Corp. to negotiate a definitive option and joint venture agreement that would allow Stallion to acquire a 70% interest in 47 ATHA mineral claims in the Athabasca Basin in exchange for 3.33 million shares and C$12 million in Exploration Expenditures. 

“We believe the exploration commitment being made by Stallion is a testament to the potential in the SW area of the Athabasca Basin, where many of our neighbors have had tremendous success,” said Mike Castanho, CEO of ATHA Energy. “Exploration through partnership continues to be one pillar of our business  as we seek to leverage the largest land position in the Athabasca Basin to create value for our shareholders.” 

The company also recently bolstered its team, adding Doug Engdahl to its board of directors and as Managing Director of the company. Engdahl brings a wealth of uranium experience as a former Senior Mine Geologist for Cameco’s McArthur River Mine, the world’s largest high-grade uranium mine. Along with Engdahl, ATHA hired five technical team members in advance of its first exploration program this summer, when the company plans to use its technical skills to help define and develop prospective assets. 

For more information about ATHA Energy Corp (CSE:SASK) (OTCQB:SASKF) (FRA:X5I), click this link or visit their website at athaenergy.com.

Featured Image @ Pixabay

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3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. Market Jar has not independently verified or otherwise investigated all such information. None of Market Jar or any of their respective affiliates, guarantee the accuracy or completeness of any such information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding ATHA Energy Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect toATHA Energy Corp.’s industry; (b) market opportunity; (c) ATHA Energy Corp.’s business plans and strategies; (d) services that ATHA Energy Corp. intends to offer; (e) BroadbandTV Corp.’s milestone projections and targets; (f) ATHA Energy Corp.’s expectations regarding receipt of approval for regulatory applications; (g) ATHA Energy Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) ATHA Energy Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute ATHA Energy Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) ATHA Energy Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) the accuracy of budgeted costs and expenditures; (e) ATHA Energy Corp.’s ability to attract and retain skilled personnel; (f) political and regulatory stability; (g) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (h) changes in applicable legislation; (i) stability in financial and capital markets; and (j) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of ATHA Energy Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) ATHA Energy Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact ATHA Energy Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing ATHA Energy Corp.’s business operations (e) ATHA Energy Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, ATHA Energy Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does ATHA Energy Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither ATHA Energy Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of ATHA Energy Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of ATHA Energy Corp. or such entities and are not necessarily indicative of future performance of ATHA Energy Corp. or such entities.

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